India’s Natural Gas Consumption to Grow 5-6% in 2024, Predicts Adani Total Gas CEO
In a recent dialogue, Suresh P Manglani, the esteemed Executive Director and CEO of Adani Total Gas Limited, shared an optimistic forecast for India’s natural gas sector. Against the backdrop of an anticipated economic growth rate of 6% to 7%, Manglani predicts a corresponding increase in natural gas consumption by 5% to 6% in 2024.
During his insights shared with S&P Global Commodity Insights, Manglani emphasized the significant growth potential within India’s gas sector, particularly highlighting the roles of Micro, Small and Medium Enterprises (MSMEs) and LNG for transport and mining (LTM) as key drivers of future demand.
He pointed out the opportunity for an additional demand of approximately 100-120 MMSCMD (Million Metric Standard Cubic Meter per Day) if the MSME sector is nurtured with a conducive ecosystem to transition towards natural gas usage. Manglani suggested the implementation of consumption-linked incentives to boost India’s march towards greater natural gas utilization. This, he believes, will not only benefit City Gas Distribution (CGD) companies but also improve pipeline and terminal usage.
Highlighting the transportation sector, Manglani advocated for a gradual shift from diesel to LNG, particularly for long-haul vehicles such as trucks and buses, envisioning a robust increase in LNG demand by 2030. This transition offers a lucrative avenue for CGD companies to tap into the burgeoning market.
Despite the volatility in LNG prices triggered by global events, Manglani remains confident about India’s positioning. He cited stabilized prices, attributed to increased domestic gas production and a strong CGD distribution network, as stabilizing factors.
Further discussing infrastructure, he shared an optimistic view regarding India’s growing domestic gas production, enhanced pipeline connectivity, and expanding Regasified Liquefied Natural Gas (RLNG) capacity. With an anticipated supply glut of LNG from 2025-26 onwards, India’s evolving infrastructure and distribution networks are well-positioned to benefit.
In reaction to market fluctuations, Manglani revealed that Adani Total Gas has strategically reduced its dependence on spot contracts, opting for a diversified portfolio to mitigate risks. The company’s expansion plans include acquiring new CGD licenses and focusing on LTM and e-mobility initiatives to foster growth.
Adani Total Gas reported impressive quarterly results, indicating a 21% increase in CNG sales volumes and a modest 1% growth in PNG volumes for the nine-month period ending December 31, 2023. These figures echo the company’s dedication to clean and sustainable fuel alternatives.
With an outlook towards a greener future, Adani Total Gas is actively investing in LNG retail outlets, EV charging infrastructure, and biomass energy projects. Among its notable milestones, the company announced its first LNG Retail Outlet in Dahej, Gujarat, set to commence operations by July 2024. Additionally, through Adani TotalEnergies E-mobility Limited, it has commissioned 329 EV charging points across 10 states, with over 1050 more in development.
Under Manglani’s direction, Adani Total Gas is not only focusing on amplifying its presence in India’s gas sector but is also deeply committed to fostering a sustainable energy landscape. With ambitious growth strategies firmly in place, the company is set to play a critical role in India’s energy transition, making substantial strides towards its vision of a cleaner, more sustainable future.
